Strategic Management on Business (Case Study Sample)

BSc (Hons) Business Management (Top-up)
February 2021
BMP 6002: Strategic Management
Strategic Management case-study analysis
Submitted by:
Name:
ID:
Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc64957406 \h 1Assessment of the Process Organisations use in determining their strategy PAGEREF _Toc64957407 \h 1Strategic Vision and Mission PAGEREF _Toc64957408 \h 2Vision PAGEREF _Toc64957409 \h 2Mission PAGEREF _Toc64957410 \h 4Organisational Objectives PAGEREF _Toc64957411 \h 5Models and Tools Used by Organisations in Development of Business Strategy PAGEREF _Toc64957412 \h 7SWOT Analysis PAGEREF _Toc64957413 \h 8Porter’s Five Forces Model PAGEREF _Toc64957414 \h 9Change Management PAGEREF _Toc64957415 \h 12Conclusion PAGEREF _Toc64957416 \h 14References PAGEREF _Toc64957417 \h 15
Introduction
Strategic management is a discipline that is concerned with ensuring that an organisation meets its short and long-term objectives. As described by ADDIN EN.CITE Schmuck20201Schmuck (2020)1117Schmuck, RolandStrategic management consulting in HungaryStrategic ManagementStrategic Management45-53253managementconsultingstrategyhungary2020University of Novi Sad - Faculty of Economics, Subotica1821-3448Schmuck (2020), strategic management is a science concerned with the formulation, implementation, and evaluation of cross-functional decisions help an organisation to achieve its long-term objectives. Strategic management is closely related to strategic planning which I essence is disciplined and deliberative effort that shapes the organisation into achieving its strategic objectives ADDIN EN.CITE Kools20202(Kools & George 2020)2217Kools, MarcoGeorge, BertDebate: The learning organization—a key construct linking strategic planning and strategic managementPublic Money & ManagementPublic Money & Management262-26440420200954-0962https://www.tandfonline.com/doi/full/10.1080/09540962.2020.1727112(Kools & George 2020). To comprehensively understand strategic management, one needs to understand the term “strategy.” According to ADDIN EN.CITE Johnson20173Johnson et al. (2017)336Johnson, GerryWhittington, RichardRegnér, PatrickScholes, KevanAngwin, DuncanExploring StrategyBusiness planningStrategic planningBusiness planning-Case studiesStrategic planning-Case studies2017Harlow, United KingdomPearson Education UK9781292145174Johnson et al. (2017) strategy is the long-term direction of a company. According to this definition, strategy is therefore made up of three elements, that is, long-term meaning a longer period of time, direction defining the trajectory the organisation wishes to take to reach where they want, and organisation representing the people and systems in place acting as agents of the strategy. Management on the other hand generally is the action of planning, controlling, and directing or administrating an entity. Therefore, concisely, strategic management is the administration of and organisation to help it achieve its long-term objective.
This paper shall elucidate the models and tools of strategic management. A critical assessment of Unilever has been made to determine their short-term and long-term organisational strategy. Additionally, the critical models and tools of strategic management shall be extensively discussed and how these critical models relate to the Unilever Plc. Finally, critical analysis of change management based on the complexity of transformation process, costs, risks, and sustainability.
Assessment of the Process Organisations use in determining their strategy
In the current business environment which is filled with constant change and developments, the leaders within any organisations need to think strategically of the future of their business. It is imperative for the business leaders to make the strategic decisions that gives them a competitive advantage in the highly competitive business environment. According to ADDIN EN.CITE Phiri20204(Phiri et al. 2020)4417Phiri, WilliamNg’andwe, EuphrasiaMukutu, IreenMoono, DelilahKapapi, PeterA critical analysis of strategic management process2020https://www.researchgate.net/profile/Euphrasia_Ngandwe/publication/338006578_A_critical_analysis_of_strategic_management_process/links/5df9ed1e92851c836485634d/A-critical-analysis-of-strategic-management-process.pdf(Phiri et al. 2020) For organisation to get to where they want, It is important for them to define themselves (strategic analysis), then determine where they want to be and how they will reach there (strategic planning/choice) and finally set out to achieve their strategic objectives (strategic implementation). This process is generally all about strategic management.
In a more structured manner, strategic management process involves five key steps as proposed by ADDIN EN.CITE Phiri20204Phiri et al. (2020)4417Phiri, WilliamNg’andwe, EuphrasiaMukutu, IreenMoono, DelilahKapapi, PeterA critical analysis of strategic management process2020https://www.researchgate.net/profile/Euphrasia_Ngandwe/publication/338006578_A_critical_analysis_of_strategic_management_process/links/5df9ed1e92851c836485634d/A-critical-analysis-of-strategic-management-process.pdfPhiri et al. (2020). These steps which are often interrelated include;
1 Development of the strategic vision and mission
2 Development of organisational objectives
3 Developing the business strategy
4 Implementation of the strategy
5 Performance Evaluation
Figure 1. Strategic management process
Strategic Vision and Mission
Vision
The organisational vision answers the question where the company wants to be. As postulated by ADDIN EN.CITE Collins19965Collins and Porras (1996)5517Collins, James CPorras, Jerry IBuilding your company's visionHarvard business reviewHarvard business review65-&74519960017-8012http://www.cin.ufpe.br/~if275/material/artigos/BuildingYourCompanysVision.pdfCollins and Porras (1996) the organisational vision majorly contains two elements, that is, the core ideology and envisioned future. The core ideology is centred on the core values that guide the organisation. The core ideology defines the character of the organisation and how they conduct business. It gives the business their identity and sets the path for their core purpose. The envisioned future refers represents a future objective or goal that organisation would like to achieve. Unilever has been able to define its vision. The vision statement according to their 2019 annual report is “to be the global leader in sustainable business. We will demonstrate how our purpose-led, future-fit business model drives superior performance, consistently delivering financial results in the top third of our industry” ADDIN EN.CITE Unilever20196Unilever (2019)6627UnileverPurpose-led, future-fit: Unilever Annual Report and Accounts 20192019https://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_ULVR_2019.pdfUnilever (2019).The core values and principles that guide Unilever include Integrity, Responsibility, respect, and Pioneering as displayed in figure 2 below.
Figure 2. Print screen of Unilever vision (Source: ADDIN EN.CITE Unilever20217(Unilever 2021)7712Unilever About Unilever: Our Values and principles2021https://www.unilever.com/about/who-we-are/our-values-and-principles/(Unilever 2021) )
Figure 3. Print screen of Unilever values and principles (Source: ADDIN EN.CITE Unilever20217(Unilever 2021)7712Unilever About Unilever: Our Values and principles2021https://www.unilever.com/about/who-we-are/our-values-and-principles/(Unilever 2021) )
Mission
The mission statement as defined by ADDIN EN.CITE Phiri20204Phiri et al. (2020)4417Phiri, WilliamNg’andwe, EuphrasiaMukutu, IreenMoono, DelilahKapapi, PeterA critical analysis of strategic management process2020https://www.researchgate.net/profile/Euphrasia_Ngandwe/publication/338006578_A_critical_analysis_of_strategic_management_process/links/5df9ed1e92851c836485634d/A-critical-analysis-of-strategic-management-process.pdfPhiri et al. (2020) answers the question on “why we are here?” The mission therefore defines the reason for existence of the business and what they specifically do. In other words, the mission defines the business purpose of the organisation or rather the current business scope identify the company and what they do ADDIN EN.CITE Bora20178(Bora, Borah & Chungyalpa 2017)8817Bora, BBorah, SChungyalpa, WCrafting strategic objectives: Examining the role of business vision and mission statementsJournal of Entrepreneurship & Organization ManagementJournal of Entrepreneurship & Organization Management1-6612017(Bora, Borah & Chungyalpa 2017). The organisational mission statement of Unilever as stated on their website is “to add vitality to life. We meet every day needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.”
Figure 3. Unilever Mission
Organisational Objectives
These are the key actionable frameworks that are developed to ensure that the mission statement is achieved. Development of abstract strategic objectives gives a clearer picture on how the vision and mission will be met. Strategic objectives therefore are more specific and purposeful. Unilever has developed key strategic objectives that shall help it achieve its vision and mission. Unilever’s business purpose is defined as “making sustainable living common place. The Unilever purpos...